Public Finance Authority approves $26.11M FY2026 budget; Office of Disaster Recovery seeks $12.21M and $4M seed funds

The Virgin Islands Public Finance Authority (PFA) told the legislature on June 10 that its FY2026 administrative and operations budget is $26,110,000, a decrease of roughly 21% from FY2025, driven by lower consultancy and vacancy budgeting. Director Nathan Simmons told senators the PFA budget will be funded from a mix of gross receipts, general fund appropriations, federal reimbursements and the authority’s project funds.

Simmons reviewed debt and capital activity, including the June 5, 2025 issuance of $150,155,000 in grant anticipation revenue (GAVI) bonds to finance a package of transportation and infrastructure projects (ferry and Veterans Drive among them). He also described the authority’s role managing the Matching Fund securitization bonds, tobacco settlement bonds and other special purpose entities; outstanding balances and rating actions were discussed in Q&A.

Why it matters: the PFA series supports multi‑hundred million dollar infrastructure programs and manages project and debt resources that affect long‑term fiscal commitments. ODR’s work channels federal recovery dollars into school, hospital and infrastructure reconstruction projects that employ local contractors and generate tax revenue.

Office of Disaster Recovery and super PMO ODR Director Adrienne Williams Octalin presented the office’s FY2026 operating request of $12,218,820 and asked the legislature to appropriate $4,000,000 in seed/float funds to cover payroll and administrative needs while federal drawdowns are processed. She reported ODR has obligated $23.9 billion in recovery funding and listed completed projects and major bundled procurements in design or solicitation stages, including multiple school reconstruction bundles, health‑care projects and replacement generation for WAPA. Williams Octalin described the super PMO and the Jacobs Engineering contract (staff augmentation and program management) and noted the office is filling dozens of engineering, finance and project management positions while continuing procurement and construction oversight.

Bonds, financing and projects - The PFA described the revised general obligation and revenue bond ceilings and noted outstanding GO debt of roughly $453.1 million and available GO capacity near $1.1 billion based on assessed valuation figures presented to the committee. - The GAVI bond closing provided funds for a ferry between St. Thomas and St. Croix, Veterans Drive phase 2 and multiple road projects; PFA said the bond issuance also financed phase 2 of roadway projects previously started under FHWA grant anticipation notes. - ODR and PFA identified multiple large contracts for program management, construction management and design; committee members asked for clarity on contract values and justification. Simmons and ODR staff described large multi‑year contracts (Jacobs approximately $137,235,258 over three years cited in testimony) to provide staff augmentation for the super PMO.

Discussion vs. direction vs. decisions - Discussion: Senators asked about the PFA’s general fund request, the GAVI bond purpose, matching fund securitization balances and job creation estimates from recovery spending. - Direction: Committee members asked PFA and ODR to provide additional detail on professional services contracts, project schedules and anticipated obligations; PFA/ODR agreed to follow up with documentation. - Decision: No final appropriations were made at the hearing.

What’s next: Lawmakers requested detailed project and contract schedules, debt service tables and any outstanding obligations tied to the GAVI and matching‑fund financings. ODR said it will provide procurement timelines for major bundles and staffing plans for the super PMO.